There may be another short setup soon.
If a company is valued at $10 rises to $20 then comes back to $12, should you be long in the short-term and mid-term time frames?
The answer is no.
The proper play here is either to stay out of the market or to be shorting strategic positions.
-There isn't huge profitable moves right after a huge movement. Market needs a few weeks to get a good movement in.
My current plan is not to take the long side of the market. Because choosing what not to do is as important as choosing what to do.
Because every moderate pump will be met with selling. People who bought at $270 will sell to you. People who bought at $260 will sell to you. Maybe $250 buyers will sell to you. After a crash like that, who wouldn't want to minimize their losses?
This does not mean you should take a short right now though. Because there could be a pump. Even a small one perhaps.
The best option is to short when the price moves up and it just seems obvious to short. Or, the market could just straight drop to $220, and then $200. It's possible.
$240 area is a strategic area to look for a short with a tight risk-reward ratio. If price moves up more and in a parabolic motion, a higher short would be possible. But as of now, there is great long or short opportunity. It's just people trying to catch the bottom here against people selling their coins they bought on the parabolic movement up.
I don't think staying in a small short position is a bad idea either - but it's not necessarily worth the time and risk.
For example, holding this short I mentioned here isn't bad but I don't personally like these kind of plays as they take longer:
tradingview.com/v/GIbKZE51/
And check the related idea I made after I got short near the top (below)
The answer is no.
The proper play here is either to stay out of the market or to be shorting strategic positions.
-There isn't huge profitable moves right after a huge movement. Market needs a few weeks to get a good movement in.
My current plan is not to take the long side of the market. Because choosing what not to do is as important as choosing what to do.
Because every moderate pump will be met with selling. People who bought at $270 will sell to you. People who bought at $260 will sell to you. Maybe $250 buyers will sell to you. After a crash like that, who wouldn't want to minimize their losses?
This does not mean you should take a short right now though. Because there could be a pump. Even a small one perhaps.
The best option is to short when the price moves up and it just seems obvious to short. Or, the market could just straight drop to $220, and then $200. It's possible.
$240 area is a strategic area to look for a short with a tight risk-reward ratio. If price moves up more and in a parabolic motion, a higher short would be possible. But as of now, there is great long or short opportunity. It's just people trying to catch the bottom here against people selling their coins they bought on the parabolic movement up.
I don't think staying in a small short position is a bad idea either - but it's not necessarily worth the time and risk.
For example, holding this short I mentioned here isn't bad but I don't personally like these kind of plays as they take longer:
tradingview.com/v/GIbKZE51/
And check the related idea I made after I got short near the top (below)
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